Money Anxiety Index Latest Indicator of a Double-Dip

Where there is misery there also usually is anxiety.

Such is the case with two economic indicators, both showing conditions that have deteriorated to levels not seen in as much as 30 years.

The latest indicator to ring up trouble is the Money Anxiety Index, which uses traditional economic metrics as well as other factors to gauge the level of consumers' worry regarding their personal financial conditions.

According to the May figures, the MAI is not only at its highest level in 30 years at 91.9 but also two months away from indicating another dip into recession. In the past, five straight months of increases in the index often signaled recession.

“If this trend will continue for a couple more months the likelihood of a double-dip recession is very high,” Dan Geller, chief research officer for Money Anxiety, said in an interview. “Pretty much the main reason is uncertainty about the prospects of an economic recovery.”

The trend in the lesser-followed MAI comes on the heels of the Misery Index —a bit more well-known of a trend indicator—rising to levels not seen since May 1983. The Misery Index adds the unemployment and annualized inflation rate and currently stands at 12.7.

Both gauges are indicative of burgeoning problems for an economy still trying to find what the pros call “escape velocity” despite trillions in stimulus, bailouts and easy money

“People feel it in their personal life, in the increasing Consumer Price Index, the unemployment situation, housing,” Geller said. “Overall, all those conditions pretty much lead to a lack of confidence in the recovery.”

Money Anxiety Index Latest Indicator of Double-Dip.

One of the key concerns with the current scheme is that the people on main street are those that are really beginning to feel the effects of a slowing economy and rising prices "despite trillions in stimulus, bailouts and easy money". The scheme is being propped up by these stimulus measures which did accomplish some progress toward recovery, but was far from a stellar performance, you only have to look at unemployment levels and housing prices. The Money Anxiety Index is indicating a soon coming double-dip into recession should it continue. It seems what happens on main street takes time to trickle upwards, as financial markets don't seem overly affected by what is going on, but then it is a global financial market place so can invest anywhere. And this is all on the back of growing sovereign debt problems across a number of developed nations and the Euro crisis.

reply to post by surrealist


You are aware that the global stock markets rallied on hopes that Greece will work out their debt problem?
Maybe now we go back to US dollar devaluating?
Your link isn't loading maybe you could provide some text?